Futures day trading software
A derivative is when a financial instrument derives its value from the price fluctuations of another instrument. The futures contract has a price that will go up and down like stocks. In fact, your futures chart will probably look similar to your stock chart, with opportunities to buy low and sell high.
Instead, you pay a minimal up-front payment to enter a position. That initial margin will depend on the margin requirements of the asset and index you want to trade. Day trading futures vs stocks is different, for example. You are not buying shares, you are trading a standardised contract. Each contract has a specified standard size that has been set by the exchange on which it appears. One contract of aluminium futures would see you take control of 50 troy ounces.
The FND will vary depending on the contract and exchange rules. Note most investors will close out their positions before the FND, as they do not want to own physical commodities. The last trading day of oil futures, for example, is the final day that a futures contract may trade or be closed out prior to the delivery of the underlying asset or cash settlement.
Usually, most futures result in a cash settlement, instead of a delivery of the physical commodity. This is because the majority of the market is hedging or speculating. You will need to take into account unpredictable price fluctuations in the last trading day of crude oil futures, or natural gas futures, for example. But before you start trading, you need to get to grips with your chosen asset, as the quantity of different futures varies.
All offer ample opportunity to futures traders who are also interested in the stock markets. On top of that, there are several other markets that offer the substantial volume and volatility needed to turn intraday profits. However, before you put all your capital on the line, remember each market has its own attributes and careful analysis is needed to uncover the right market for your individual trading style and strategies.
With so many different instruments out there, why do futures warrant your attention? For five very good reasons:. Whilst the stock markets demand significant start-up capital, futures do not. You simply need enough to cover the margin. With options, you analyse the underlying asset but trade the option. However, your profit and loss depend on how the option price shifts.
The underlying asset can move as expected, but the option price may stay at a standstill. Futures, however, move with the underlying asset. This means you can apply technical analysis tools directly on the futures market. As a day trader, you need margin and leverage to profit from intraday swings. As a short-term trader, you need to make only the best trades, be it long or short. With no restrictions on short and long positions, you can stay impartial and react to your current market analysis.
Whereas the stock market does not allow this. You are limited by the sortable stocks offered by your broker. You have to borrow the stock before you can sell to make a profit. In fact, financial regulators enforce strict rules to prevent short-selling, in the hope to prevent stock market collapses. Because there is no central clearing, you can benefit from reliable volume data. Getting reliable volume data from a forex dealer is impossible, as forex trading is decentralised, so nobody has all the information.
See real-time market data in numerous widgets designed to suit your needs. Track the ebb and flow of the market and relative price movement with our static price ladder.
Integrated charts and technical analysis provide traders a complete trading solution. Gain an edge in your trading with our enhanced suite of tools and APIs. Write your own rules and tweak the behaviors of powerful automated solutions. Rapidly design, test and deploy custom algos without writing a single line of code. Develop bespoke applications for your unique trading style and requirements with our APIs.
Leverage automated trading solutions designed for speed and deployed server-side. Execute your orders through our global network of colocated data centers. The following firms have signed on to provide access to TT. Each product you invest in includes multimedia educational training that shows you how to use each tool with skill and confidence.
The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that your losses can exceed deposits and therefore you should not invest money you cannot afford to lose.
You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts. Past performance, whether actual or hypothetical, is not necessarily indicative of future results.
All depictions of trades whether by video or image are for illustrative purposes only and not a recommendation to buy or sell any particular financial instrument.